Published by REALTOR.com | June 30, 2025
Thinking about selling a rental or flip? Here's how to sell an investment property in 2025 while minimizing taxes and maxing your profit.
An investment property, by definition, is a place with one simple goal: to make money. So if you want to learn how to sell an investment property, we’d wager that maximizing those profits is likely your top priority.
In many ways, the steps to selling an investment property are the same as selling a home where you live: You hire an agent (here’s how to find a real estate agent in your area) who will market your property on Realtor.com® and start bringing in potential buyers. Still, since investment properties operate under different rules taxwise than a home where you live, you’ll want to ask certain questions.
Here are the factors to consider—plus the fun part: how much money you could stand to make.
Should you sell your investment property now?
First things first: Are you sure you want to sell? Because there are other options that could drum up income—steady income—such as renting it out.
Whitney Nicely, principal broker with Whitney Buys Houses in Knoxville, TN, has more of a buy-and-hold mindset.
“It’s silly to sell the one you have unless you have a really good reason,” Nicely says. So yes, there are valid reasons to sell, but you should make sure yours make the cut.
Top reasons to sell an investment property in 2025
If you’re wondering whether now is the right time to sell your investment property, 2025 offers several compelling reasons to consider cashing out. From changing market dynamics to personal financial goals, here are the top reasons owners are choosing to sell this year:
The neighborhood is changing
If the hood is hot and you’ve made a pile of cash, it could be a good time to take your money and run. Conversely, if a neighborhood is deteriorating, you might want to get out before it falls too far.
“Even if you end up only breaking even on your property, at least you won’t lose money if the market continues to dive,” Nicely says.
The property needs massive repairs
Maybe you’re looking at a foundation or roof that needs overhauling, or another big-ticket expense on a rental house. Or, a condo you’ve invested in is due for a major assessment.
“If substantial repair work is needed, or you just don’t want to put the energy into it, it is likely a good time to move on,” says broker Jared LaFrenais, of Douglas Elliman in New York. However, you need to disclose these issues and will likely figure them into the price notes.
It’s a tax liability
Owning property, even as an investment, can bump you up a tax bracket. That’s a good reason to sell, especially if you have no interest in being a landlord. You also should take note of the potential expiration of tax abatements, notes LaFrenais.
“If, for example, your investment is a condominium in which you generate a rental income, the expiration of an abatement and the resulting tax increase will impact your finances, so consider the advantages to selling before this occurs.”
You could get a better return elsewhere
Most importantly, consider your options, LaFrenais notes: “If you have held a property for many years, it has likely increased in value, which can allow you to sell and diversify into an emerging neighborhood or multifamily homes.”
Who’s buying investment properties right now?
Today’s market offers a diverse pool of buyers for investment properties—including both investors and traditional homebuyers.
If your property is in a desirable area or move-in ready, it might attract individual buyers looking for a primary residence. This is especially common with single-family homes, townhomes, or small multifamily properties in residential neighborhoods.
Other investors may be looking to expand their rental portfolios, particularly if your property has existing tenants and a reliable rent roll. In fact, 13% of homes purchased in 2024 were purchased by an investor, according to the latest Investor Report from Realtor.com. Selling a tenant-occupied property can appeal to buyers seeking immediate cash flow.
Don’t overlook the people already living there. If your tenants are stable and interested in homeownership, offering them the chance to purchase the property could lead to a quick, smooth sale—no listing or showings required.
Understanding your potential buyer types can help you position the property more effectively, whether that means highlighting its income potential or staging it as a future home.
